- Over the last few years, institutional investors have increased their exposure to non-traditional or alternative property types, which represented 14% of total direct real estate investment volumes in Europe in the first half of 2018.
- Senior housing and student housing offer an attractive yield premium of 150bps over standard residential investments, while benefiting from the same defensive character.
- New data mining methodologies allow investors to better identify micro locations where supply-demand imbalances are offering the most attractive opportunities in the student and senior housing sectors.
- Student housing in France is seeing a big increase in new supply, while some changes in the educational system might limit new demand and increase turnover.
- Senior housing offers attractive investment opportunities to investors due to strong demand fundamentals, high occupation rates, low occupier turnover and a diversified revenue model for the operator.
- Existing German senior housing has so far focused more on a higher level of medical care, which might leave more room for lower care and more affordable alternatives in future.
SENIOR & STUDENT HOUSING OFFER A YIELD PREMIUM OVER STANDARD RESIDENTIAL IN FRANCE
Sources: JLL, CBRE & AEW Research
The information and opinions presented in this research piece have been prepared internally and/or obtained from sources which AEW believes to be reliable; however, AEW does not guarantee the accuracy, adequacy, or completeness of such information.